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Case Study __________________________________________________________________________________
Sistema Design and installation of world class integrated warehouse
Dexion has designed and installed New Zealand’s most advanced
integrated warehouse system to enable world-leading Auckland-
based plastic food container manufacturer Sistema to better service
retail contracts in Europe and the United States.
Background
Sistema designs and makes high quality, stackable, food safe storage containers in its Auckland
manufacturing and distribution facility and supplies these products to millions of customers in 82
countries around the world. The company is one of New Zealand’s leading export manufacturers.
Founded in a garage 30 years ago by managing director Brendan Lindsay, Sistema is now famous for
its Klip It collection of storage containers with their distinctive blue clips. That range has been added
to with the Microwave and To Go family of products.
Business Challenge
To meet rapidly growing global demand for its
plastic food storage and cooking containers,
including from leading European and United States
retail chains, Sistema commissioned a new multi-
million dollar manufacturing and distribution facility
to be built at The Landing Business Park at Auckland
International Airport. Sistema’s site is New Zealand’s
largest privately owned manufacturing facility
covering 25 hectares.
Kerrect Logistics consultant Scott Kerr, who was
appointed to manage the supply and installation of
an integrated material handling system for the new
facility, says the challenge was to design a
distribution system capable of handling future
throughput requirements, predominantly driven by
increased export volumes.
Kerr said the material handling system was critical to
Sistema’s future success as it would drive the whole
distribution operation from receiving products from
production to dispatching product at the container docks.
The project also had specific business and technical requirements including:
Urgency: Sistema had to move from its existing premises into the fully operation new facility in
12 months.
Integration: The new material handling system had to be integrated to a new Enterprise
Resource Planning (ERP) software system Sistema was concurrently implementing.
“The new material handling system was critical to Sistema’s future
success as it would drive the whole distribution operation.”
Solution
Dexion’s proposed material handling solution for Sistema started with a careful analysis of the
company’s current business and future plans.
“We wanted to ensure our solution would enable Sistema to achieve its current goals and also its
future growth targets by proposing a fully automated, scalable solution,” says Dexion regional sales
manager for integrated systems Dan Austin.
“We submitted a formal proposal in response to Sistema’s request for proposals along with a
solution presentation and then conducted workshops with the company to refine concepts. We
demonstrated our capability by showing Sistema through sites with similar solutions to that
proposed.”
At the heart of the Dexion’s solution is an Automated Storage and Retrieval System (ASRS) for
storing and despatching pallets of product bound for export markets. The system features:
Over 15,000 pallets of ASRS racking in multi-deep configuration
Five storage and retrieval machines (SRMs)
A pallet conveyor system including four pallet elevators and two high speed transfer cars
Over 15,000 pallets of Dexion’s Speedlock single-selective racking
Dexion’s Real-time Distribution System (RDS) software comprising Warehouse Control
System (WCS) for control of the automation, and Warehouse Management System (WMS)
for control of warehouse inventory and associated processes: receiving, put-away,
replenishment, picking, dispatch, cycle counting etc.
Austin says Dexion had a dedicated and highly experienced project management team who
developed the overall programme to ensure go-live at the required time.
With the ASRS installed, Sistema’s manufacturing and warehousing operations are now fully
integrated. Products come straight off the manufacturing line into assembly and storage – a process
managed by Dexion’s RDS software.
The system enables 24x7 operations – it is high density, high throughput, accurate and has the
flexibility allow for growth of the business.
“Sistema uses technology to design and build its products and now with this system it has a world
class material handling solution designed to meet its specific requirements,” says Austin.
“Sistema now has a world class material handling solution designed to
meet its specific requirements.”
Benefits
Dexion’s material handling system is meeting Sistema’s throughput and storage requirements
exactly as planned with the required capacity for the future. And the software implemented by
Dexion has worked seamlessly and manages all processes as planned.
Austin says the key reasons for success are:
A strong local Dexion presence and solution development team
Strong experience in the implementation of ASRS systems
High quality product from Dexion and strategic partners
An experienced and professional project management team
An experienced software engineering team
A strong relationship with Sistema and a team approach to delivering the solution
“Sistema staff are very pleased with the software systems Dexion has implemented in terms of
managing processes and also providing visibility into performance of the various warehouse
functions.”
On completion of the project Sistema founder and managing director Brendan Lindsay and CEO Drew Muirhead summed up their appreciation: “We wish to acknowledge the tremendous efforts of Dexion and the project team to deliver this
solution as promised under some very demanding circumstances and challenges.
“Sistema have learnt much from this journey and, more importantly, we have collectively delivered a world class facility which we should all be proud of, in full and on time. Well done and thanks.”
“We wish to acknowledge the tremendous efforts of Dexion and the
project team to deliver this solution as promised.”